The Financial Post reports in its Monday edition that Canadian banking is no longer the engine driving profit growth at the country's large lenders. A Bloomberg dispatch to the Post reports that with Canadian financial giants including Royal Bank of Canada and Toronto-Dominion Bank having announced results last week, and rivals to follow, it is becoming clear that businesses such as wealth management and United States operations are doing more to increase earnings than their mainstay of domestic consumer lending. Baskin Wealth Management founder David Baskin says: "Canadian banking has got the blahs. ... I'm not surprised that the domestic operations are pretty flat. The reason that TD and RBC in particular went south was to find greener fields."
Much of Canada is experiencing a housing slowdown and household debt is at record high, crimping further borrowing. The country also is a mature market for banking, with lenders getting much of their growth by stealing market share from each other. Canada's economic prospects are forecast to lag behind those of its southern neighbour. Bank of Nova Scotia and Bank of Montreal, lenders with significant operations outside the country, report their results next week.
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